All About ERP Software: An Overview

By: Sandra Stammberger

Enterprise and Resource Planning or otherwise known as ERP is a product of information technology. It changed the way businesses were conducted and at present, more and more organizations and industries are utilizing it. ERP is a software system and if you want to learn more about it, read on.

By definition, ERP refers to the business strategies and software implemented by the ERP systems. Organizational performance is greatly improved by the use of software applications like ERP that includes resource planning, management control, and operational control. The ERP software can be used by functional departments like human resource, accounting, and finance.

The ERP software evolved from MRP or Manufacturing Requirements Planning and this happened in the 1980s. Because of technological advancements, ERP is more flexible. If a business or organization utilizes ERP, there are benefits that can be obtained. You can expect improved coordination among your departments as well as increased efficiency in conducting the business.

Originally, the ERP software was intended for resource planning and it should support strategic planning. However, in the real business environment ERP is rarely used for resource planning because of inadequate integration of ERP with DSS or Decision Support Systems.

Like any other software system, ERP also has its share of failures. There wre incidents of failure in ERP projects that costed millions of dollars. These ERP projects are said to fail because of failure in the different components of the ERP systems including ERP software, business processes software supports, operating systems and hardware, and the ERP users.

If you’re selecting the best ERP software offered in the market, there are certain things to consider and it really helps a lot if you know the basics of ERP. The selection process is greatly dependent on the organization’s processes. You should look into the functionality of the ERP package before you pay for it.

The software aims to integrate the functions of different departments in a certain company into only one computer system. This is truly a very integrated approach but if the organization or company is able to install the ERP software correctly, you can expect tremendous payback.

The ERP packages offered in the market today are not intended to hold up customization. If you plan to customize such package, expect to spend a huge amount. The move is rather complicated and at the same time expensive. The selection process is therefore of utmost importance. The simple task of installing the software has several variables including the installed modules, the divisions concerned, the integration amount required for the existing systems, the company’s readiness, and the project’s ambition.

ERP packages are usually quite generic about inquiries and reports and for every implementation, you can already expect customization. You also need to purchase reporting packages that will complement with your chosen ERP software. If you want a centrally maintained cross-platform ERP system, you can choose a web-based system. You can easily access the system through web browsers.

Enterprise Resource Planning promises a lot to organizations and companies and if you think that your organization can benefit a lot from ERP software, be sure to choose the ERP package wisely. If you’re into the manufacturing business, choose a suitable package aimed for manufacturing.

The nature of the business or organization should be based at in selecting the proper ERP software.

Enterprise Information Systems
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